What does a general aggregate limit apply to in a liability policy?

What does a general aggregate limit apply to in a liability policy?

• A. The total limit for bodily injury and property damage claims during the policy period
• B. The limit per occurrence
• C. The limit per person
• D. The limit per location

Answer: (A)

The general aggregate limit is the total amount the insurer will pay for all bodily injury and property damage claims that occur during the entire policy period. It caps the sum of multiple claims across the term, so even if several incidents happen, the insurer’s payout for BI/PD cannot exceed that single aggregate amount. This is different from per-occurrence limits (which apply to a single incident) and per-person or per-location sublimits, which are specific caps for individual situations rather than the total for the period. In short, the general aggregate sets the overall cap for BI/PD losses within the policy term.

The general aggregate limit is the total amount the insurer will pay for all bodily injury and property damage claims that occur during the entire policy period. It caps the sum of multiple claims across the term, so even if several incidents happen, the insurer’s payout for BI/PD cannot exceed that single aggregate amount. This is different from per-occurrence limits (which apply to a single incident) and per-person or per-location sublimits, which are specific caps for individual situations rather than the total for the period. In short, the general aggregate sets the overall cap for BI/PD losses within the policy term.